INDUSTRY ANALYSIS PROJECT BY SADHU VASWANI INSTITTUTE OF MANAGEMENT STUDIES PUNE

1. INDUSTRY ANALYSIS
SADHU VASWANI INSTITUTE OF MANAGEMENT
FOR GIRLS,PUNE
BANKING INDUSTRY
PHARMACEUTICAL INDUSTRY
HANSIKA PUNJABI 17102
SOUNDARYA DASARI 17118
SHIRIN MEDORA 17119
RAVINA BAJAJ 17142
NAVEENA AUHULA 17152

2. INDUSTRY ANALYSIS – THE BASIC
 Players in the industry
 Key factors affecting the demand for banks
 Professional trade bodies of the banking industry
 Online presence of Banks

3. PLAYERS IN THE INDUSTRY
Bank of Baroda (BoB) is an Indian state-owned International banking and financial services
company headquartered in Vadodara in Gujarat, India. It has a corporate office in Mumbai.
Axis Bank Ltd is the third largest of the private sector banks in India offering a comprehensive
suite of financial products. The bank has its head office in Mumbai and Registered office in
Ahmadabad.
Punjab National Bank (PNB) is a state owned corporation based in New Delhi, India The bank was
founded in 1894.
ICICI Bank, stands for Industrial Credit and Investment Corporation of India, is
an Indian multinational banking and financial services company headquartered in Mumbai,
Maharashtra
State Bank of India (SBI) is an Indian multinational public sector banking and financial services
company. It is a government owned corporation with its headquarters in Mumbai, Maharashtra
HDFC (Housing Development Financial Corporation) Bank Limited is an Indian banking and
financial services company headquartered in Mumbai, Maharashtra

4. KEY FACTORS AFFECTING THE DEMAND FOR
BANKS
High growth of Indian Economy & Favorable
Demographics - Growth of infrastructure, industry,
services and agriculture is expected to grow corporate
credit of the economy .
Private Banking & Wealth Management - India
not only enjoys a favorable demographic dividend but
also has a strong population of High Net worth
Individuals (HNWI)
Technology Innovation - New channels in banking
services such as internet banking, mobile banking have
increased productivity and help in acquiring new
customers

5. PROFESSIONAL TRADE BODIES OF THE BANKING
INDUSTRY
It fights for the
betterment of the
working class as a
whole, and for
economic and political
independence of India
in an age of
globalization.
The federation espouses
the causes concerning
service conditions of
bank employees,
development of the
banking industry,
defense of public sector
banking in India and
exemplary service to
customers including the
marginal and neglected.
Bank Employees Federation of India (BEFI)
is a bank trade union consisting of
employees of commercial banks, Reserve
Bank of India, NABARD, regional rural
banks and co-operative banks.

6. BUSINESS FUNCTIONS CARRIED OUT ONLINE
 National Electronic Funds Transfer (NEFT) is the
most commonly used electronic payment method for
transferring money from any bank branch to another bank in
India. It operates in half hourly batches. At present there are
23 settlements.
 Real Time Gross Settlement (RTGS) is primarily used
for high-value transactions which are based on 'real time'.
The minimum amount to be remitted through RTGS is
Rupees Two Lakhs. There is no upper limit.
 Immediate Payment Service (IMPS) is an instant
electronic funds transfer facility offered by National
Payments Corporation of India (NPCI) which is available 24
x 7.

7. BUSINESS FUNCTIONS CARRIED OUT ONLINE
 Setting up high-tech, one of its kind, 257 SBI IN TOUCH Branches
equipped with state-of-the-art digital technology. These SBI INTOUCH
branches cover more than 143 districts across the country.
 AOK: State of the art Kiosks which enables customers to open accounts
with just a few touches
 DCPK: State of the art kiosk which enables customers to instantly print
debit cards with their own photograph on it
 CDM: Cash Deposit Machine
 ECDM: Electronic Cheque Deposit Machine, available 24*7 to our
customers
 Swayam: Passbook Printer, available 24*7 to our customers
 ATM: Automatic Teller Machine, available 24*7 to our customers

9. ONLINE
PRESENCE
As per the graph
HDFC Bank has
presence across 8
social media
channels out of
which the prominent
presence is on
Facebook, LinkedIn,
Twitter, Youtube &
their official blog.

10. Here’s a very good graph showing the comparison
of different Indian banks on social media which
clearly out states the leadership of HDFC bank in
this domain:

11. PROMOTERS AND MANAGEMENT ETHOS
 Background of Promoter groups of Banks
 Top Management Personnel – Career Highlights
 CSR Activities
 Initiatives towards social inclusion

12. BACKGROUND OF PROMOTER GROUPS IN THE
BANKING INDUSTRY – Private Sector
The promoter
group for HDFC
Bank is HDFC.
The promoter
group for ICICI
Bank is ICICI.
It has been
promoted by the
SPECIFIED
UNDERTAKING
OFTHE UNIT
TRUST OF INDIA
- SUUTI

13. BACKGROUND OF PROMOTER GROUPS IN THE
BANKING INDUSTRY – Public Sector
The promoter
group for SBI is,
The Government
of India
The promoter
group for SBI is,
the President of
India.
The promoter
group for BOB is,
the President of
India.

14. AXIS BANK –
MD
Mrs Shikha Sharma
 Mrs Sharma joined Axis Bank in 2009
 Under Mrs. Sharma’s leadership, Axis Bank has
received, 'Bank of the Year in India' -2014 by
the Banker Magazine, Financial Times.
 The Bank was conferred the certificate of
recognition for excellence in Corporate
Governance by the Institute of Company
Secretaries of India (ICSI)-2015.
 The Bank was ranked as the 'Most Trusted
Private Sector Bank' second year in a row – in
a survey, conducted by Brand Equity, Economic
Times.
 'The Best Companies to Work for' survey by
Business Today in 2013.
 Axis Bank Foundation, the CSR arm of the
Bank was conferred upon as the ‘Outstanding
Corporate Foundation’ at Forbes India,
Philanthropy Awards, 2014.

15. SBI –
Chairman
Shri Rajnish
Kumar
 In a career spanning over 36 years with
SBI, he had held various assignments
which include Managing Director
(Compliance & Risk) and prior to that
served as the Head of SBI Capital
Markets, the Investment Banking
arm of SBI Group.
 . He also served as the Chief General
Manager of North Eastern Circle of
SBI. As a part of SBI’s overseas
operations, Shri Kumar served SBI
Canada and later as Regional Head
of SBI’s UK Operations.

16. CSR ACTIVITIES

17. INITIATIVES TOWARDS SOCIAL INCLUSION
Pradhan Mantri Jan-
Dhan
Yojana (PMJDY) is
National Mission for
Financial Inclusion to
ensure access to
financial services,
namely, Banking/
Savings &
DepositAccounts,
Remittance, Credit,
Insurance, Pension in
an affordable manner.
Interest on deposit
No minimum balance
required
Easy transfer of money
across India
Accidental insurance
cover of Rs. 1 lakh
The scheme provide life
cover of Rs. 30,000/-
payable on death of the
beneficiary, subject to
fulfillment of the
eligibility condition.

18. INITIATIVES TOWARDS SOCIAL INCLUSION
Institutional Support for Subaltern
Entrepreneurship. This has been achieved
through MUDRA Bank, to provide microfinance
to entrepreneurs in rural hinterland of India.
National Hub for SC/ST entrepreneurs has been
created to support the entrepreneurs coming
from the marginalized communities.
Atal Pension Yojana - Under the scheme,
subscribers would receive the fixed pension
of Rs 1,000, 2,000, 3,000, 4,000 or 5,000
at the age of 60 years (depending on their
contributions).
8.6 million enrolments# have been made
under this scheme since its launch.

19. INITIATIVES TOWARDS SOCIAL INCLUSION
Sanitary Mart Scheme. Launched in
2014-15, under the scheme, loans are
provided to up to Rs. 15 Lakhs to Safai
Karamcharis for construction of toilets/bio-
degradable toilets

20. EXTERNAL ENVIRONMENTS
 Controlling ministry/ regulator for the banking industry
 Regulatory actions against the players in the banking
industry
 Regulatory policies on the industry as a whole
 Factors affecting the banking industry
 Key initiatives by the government to promote the industry

21. REGULATORS FOR THE BANKING INDUSTRY
Reserve Bank Of India: Reserve Bank
of India is the apex monetary Institution
of India. It is also called as the central
bank of the country.
Securities and Exchange Board Of
India: SEBI Act, 1992 : was first
established in the year 1988 for regulating
the securities market. It became an
autonomous body in 1992 and more
powers were given through an ordinance.
Since then it regulates the market through
its independent powers.

22. REGULATORS FOR THE BANKING INDUSTRY
3 ) Insurance Regulatory and Development
Authority : is a national agency of the Government of
India and is based in Hyderabad (Andhra Pradesh). It
was formed by an Act of Indian Parliament known as
IRDA Act 1999, which was amended in 2002 to
incorporate some emerging requirements.
4) Forward Markets Commission (FMC)
: Headquartered at Mumbai, is a regulatory authority
which is overseen by the Ministry of Consumer Affairs,
Food and Public Distribution, Govt. of India. It is a
statutory body set up in 1953 under the Forward
Contracts (Regulation) Act, 1952 This Commission
allows commodity trading in 22 exchanges in India, out of
which three are national level.

23. REGULATORY ACTIONS AGAINST THE PLAYERS
IN THE BANKING INDUSTRY
 MUMBAI, December 21, 2017: The Reserve Bank of India has
put Bank of India under watch for high bad loans by initiating
prompt corrective action against it .This RBI has said that the
action is taken on the bank in view of high level of bad loans.
 These banks are IDBI Bank, Indian Overseas Bank, Bank
of Maharashtra, United Bank Of India, Dena
Bank, Corporation Bank, UCO Bank, Central Bank of
India, Oriental Bank of Commerce and Bank of India. The
move will restrict the banks from announcing dividend, opening
branches, hiring and giving loans to companies rated below
investment grade.

24. REGULATORY POLICIES ON THE
INDUSTRY AS A WHOLE
 RBI Act, 1934 -The RBI Act was enacted to establish and set out
functions of the RBI. It grants the RBI powers to regulate the monetary
policy of India and lays down the constitution, incorporation, capital,
management, business and functions of the RBI.
 BR Act, 1949 -The BR Act provides a framework for supervision and
regulation of all banks. It also gives the RBI the power to grant licenses
to banks and regulate their business operation. The provisions of this
Act are applicable to Nationalized Banks, Non Nationalized Banks and
Co-operative Banks.
 FEMA - is the primary exchange control legislation in India. FEMA and
the rules made there under regulate cross-border activities of banks.
These are administered by the RBI.

25. FACTORS AFFECTING THE BANKING INDUSTRY

26. FACTORS AFFECTING THE BANKING INDUSTRY
Consumer
expectations. These
days it’s all about the
customer experience, and
many banks are feeling
pressure because they are
not delivering the level of
service that consumers are
demanding, especially in
regards to technology.
Regulatory pressure.
Regulatory requirements
continue to increase, and
banks need to spend a
large part of their
discretionary budget on
being compliant, and on
building systems and
processes to keep up with
the escalating
requirements.

27. FACTORS AFFECTING THE BANKING INDUSTRY
Increasing competition from
financial technology companies.
Financial technology (FinTech)
companies are usually start-up
companies based on using software to
provide financial services.
The increasing popularity of
FinTech companies is
disrupting the way traditional
banking has been done.
This creates a big challenge
for traditional banks because
they are not able to adjust
quickly to the changes – not
just in technology, but also in
operations, culture, and other
facets of the industry.

28. FACTORS AFFECTING THE BANKING INDUSTRY
 Bad loans -At nearly Rs10 lakh crore, India’s pile of bad
loans is bigger than the gross domestic products of at
least 137 countries.
 The share of gross NPAs in India has gone up to 10.2% by
March 2018, from 9.6% in March 17, according to the FSR.
 Cyber Security - With the growing penetration of
computers and smartphones, and increasing access to the
internet, Indians are taking to digital channels for their
banking needs. Cybercrime is becoming a greater threat as a
result.

29. Public sector banks
will now have to look
back on every
defaulter above
Rs50 core and check
whether he was
genuinely stressed or
just fooling them. In
doing so, they may
also have to check
whether their own
employees were on
the take and
colluded with the
defaulter for
kickbacks.

30. KEY INITIATIVES BY THE GOVERNMENT TO
PROMOTE THE INDUSTRY
The Government of India is planning to introduce a two percentage point discount
in the Goods and Services Tax (GST) on business-to-consumer (B2C) transactions
made via digital payments.
A new portal named 'UdyamiMitra' has been launched by the Small Industries
Development Bank of India (SIDBI) with the aim of improving credit
availability to Micro, Small and Medium Enterprises' (MSMEs) in the country.
A two-year plan to strengthen the public sector banks through reforms and capital
infusion of Rs 2.11 lakh crore (US$ 32.5 billion), has been unveiled by the
Government of India.
The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 Bill has been
passed by Rajya Sabha and is expected to strengthen the banking sector

31. FINANCIALS
 TOTAL INCOME
 NET PROFIT
 RETURN ON NET WORTH
 CAPITAL ADEQUACY RATIO
 CREDIT DEPOSIT RATIO

32. PRIVATE SECTOR
TOTAL INCOME
0
20,000
40,000
60,000
80,000
100,000
120,000
HDFC
BANK
ICICI
BANK
AXIS
BANK
TOTALINCOME
2015
2016
2017
TOP THREE PLAYERS BOTTOM THREE PLAYERS
0
5,000
10,000
15,000
20,000
25,000
TOTALINCOME
2015
2016
2017

33. NET PROFIT
TOP THREE PLAYERS
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
HDFC
BANK
ICICI
BANK
AXIS
BANK
NETPROFIT
2015
2016
2017
BOTTOM THREE PLAYERS
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
NETPROFIT
2015
2016
2017

34. RETURN ON NET WORTH
TOP THREE PLAYERS
0
2
4
6
8
10
12
14
16
18
HDFC
BANK
ICICI
BANK
AXIS
BANK
RETURNONNETWORTH
2015
2016
2017
BOTTOM THREE PLAYERS
0
2
4
6
8
10
12
14
16
18
20
RETURNONNETWORTH
2015
2016
2017

35. CAPITAL ADEQUACY RATIO
TOP THREE PLAYER
0
2
4
6
8
10
12
14
16
18
HDFC
BANK
ICICI
BANK
AXIS
BANK
CAPITALADEQUACYRATIO
2015
2016
2017
BOTTOM THREE PLAYER
0
2
4
6
8
10
12
14
16
18
CAPITALADEQUACYRATIO
2015
2016
2017

36. CREDIT DEPOSIT RATIO
TOP THREE PLAYER
0
20
40
60
80
100
120
HDFC
BANK
ICICI BANK AXIS BANK
CREDITDEPOSITRATIO
2015
2016
2017
BOTTOM THREE PLAYER
0
10
20
30
40
50
60
70
80
90
100
CREDITDEPOSITRATIO
2015
2016
2017

37. PUBLIC SECTOR
TOTAL INCOME
TOP THREE PLAYERS BOTTOM THREE PLAYERS
0.00
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
300,000.00
350,000.00
TOTALINCOME
2015
2016
2017
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
TOTALINCOME
2015
2016
2017

38. NET PROFIT
BOTTOM THREE PLAYERS
-10,000
-5,000
0
5,000
10,000
15,000
20,000
NETPROFIT
2015
2016
2017
-2,000
-1,500
-1,000
-500
0
500
1,000
1,500
2,000
NETPROFIT
2015
2016
2017
TOP THREE PLAYERS

39. RETURN ON NET WORTH
TOP THREE PLAYER
-10
-5
0
5
10
15
RETURNONNETWORTH
2015
2016
2017
BOTTOM THREE PLAYER
-20
-15
-10
-5
0
5
10
15
RETURNONNETWORTH
2015
2016
2017

40. CAPITAL ADEQUACY RATIO
TOP THREE PLAYER
10
11
11
12
12
13
13
14
CAPITALADEQUACYRATIO
2015
2016
2017
BOTTOM THREE PLAYER
0
2
4
6
8
10
12
CapitalAdequacyRatio
2015
2016
2017

41. CREDIT DEPOSIT RATIO
TOP THREE PLAYERS
0
10
20
30
40
50
60
70
80
90
CREDITDEPOSITRATIO
2015
2016
2017
BOTTOM THREE PLAYER
0
10
20
30
40
50
60
70
80
90
CREDITDEPOSITRATIO
2015
2016
2017

42. RECENT DEVELOPMENTS
 Mergers and Acquisitions
 Technological developments of banking sector
 Key alliances in the past 5 years in banking industry
 Provision of Latest EXIM Policy
 Labor Unrest in the Banking Sector

43. MERGERS AND AQUISITIONS

44. TECHNOLOGICAL DEVELOPMENTS OF
BANKING SECTOR
Indian banks made one step forward
with the implementation of Total
Branch Automation (TBA) in the late
1980s. Total Branch Automation
means total automation of a
particular branch with its own
database.
With the advent of Internet it becomes
easy for banks to share the databases
and maintain a centralized database at
a low cost. Internet facilitated banks to
create their own web pages and
customers can access these web pages
through the web browsers by sitting at
home. This kicked off online
banking way back in 1996

45. TECHNOLOGICAL DEVELOPMENTS OF
BANKING SECTOR
Through internet, most of
the banks started to install
Core Banking Solutions
(CBS) for running their
business.
It is a networking of bank
branches, which allows
customers to manage their
accounts, and use
various banking facilities
from any part of the world.
The emergence of self service
banking technologies such as
ATM, Online Banking and
Mobile Banking ushered the
concept of anytime and
anywhere banking.

46. CONCEPT OF E-BANKING
E-banking is an umbrella term for
the process by which a customer
may perform banking
transactions electronically
without visiting a brick-and-
mortar institution.
Thus the term E-banking includes
Real Time Gross Settlement
(RTGS), National Electronic Fund
Transfer (NEFT), Electronic
Clearing Service (ECS), Cheque
truncation, Automated Teller
Machine (ATM), Tele banking,
Internet banking and Mobile
banking, among others.

47. CHEQUE TRUNCATION
Cheque truncation is
the process of
stopping the flow of
physical cheque
issued by a drawer at
some point en-route
to the drawee branch.
Instead, an electronic
image of the cheque is
transmitted to the drawee
branch along with relevant
information. Images of
cheques are taken using
scanners.
It thus obviates the
need to move the
physical instruments
across branches
without any logistics
problems.

48. KEY ALLIANCES IN THE PAST 5 YEARS IN
BANKING INDUSTRY
April 17, 2013
 ICICI Bank, and Vodafone India, announced a strategic alliance to
launch a unique mobile money transfer and payment
service called ‘m-pesa’, through its 100% subsidiary, Mobile
Commerce Solutions Ltd. (“MCSL”).
This innovative offering will give the customer a
comprehensive service comprising:
 Cash deposit and withdrawal from designated outlets
 Money transfer to any mobile phone in India
 Range of mobile payment services including purchase of mobile
recharge, recharge of DTH services and utility bill payments
 Money transfer to any bank account in India
 Payments at select shops

49. KEY ALLIANCES IN THE PAST 5 YEARS IN
BANKING INDUSTRY
IndusIand Bank partners with PayU India to
revolutionize Digital Banking & Payments
 Mumbai , January 12, 2016: -IndusIand Bank has
partnered with online payment solution leader PayU
India by bringing the full suite of consumer banking
products online and powering the same through
payment innovations and online eco -systems
enabled by PayU India
 . This partnership is aimed at bridging the gap
between conventional banking world and the new age
online payment systems.

50. KEY ALLIANCES IN THE PAST 5 YEARS IN
BANKING INDUSTRY
YES Bank enters into a strategic alliance with
DHFL
 January 20, 2013 - YES Bank, India's new age
private sector Bank signed a Memorandum of
Understanding with Dewan Housing Finance
Corporation Limited (DHFL), a leading housing
finance group for distribution of Home Loans to all
YES Bank customers.
 In the first phase, this joint product will be targeted to
customers through the 60 main branches of YES Bank
across 25 cities in India.

51. EXIM POLICY - Export-Import Bank of India (EXIM
Bank)
Export-Import Bank of India (EXIM Bank) is a
specialized financial institution, wholly owned by
Government of India, set up in 1982, for financing,
facilitating and promoting foreign trade of India.
The Export-Import Bank of India has extended a Line
of Credit (LOC) of US $24 million to the Government of
the Republic of Côte d'Ivoire, for financing electricity
interconnection project between Cote d'Ivoire and Mali.
The LOC was the 200th such agreement provided by
Exim Bank on behalf of the Government of India to
promote bilateral relations and Economic
partnrships between countries.

52. EXIM POLICY - Export-Import Bank of India (EXIM
Bank)
To promote hi-tech
exports from
India, the Bank
has a lending
programme to
finance
research and
development
(R&D) activities
of export-oriented
companies.
During the year
2015, the Bank
issued India’s
first USD
denominated
Green bonds
with a benchmark
size of US$500
million.
Exim will use the
net proceeds from
the sale of the
notes to fund
eligible green
projects in
countries including
Bangladesh and Sri
Lanka.

53. Labor Unrest in the Banking Sector
 March 1, 2018 - To oppose the transfer of bank employees across the
country following the Central Vigilance Commission advisory in the
wake of PNB fraud, All India Bank Employees’ Association (AIBEA) is
considering a nationwide protest.
 December 12, 2017 - The All India Bank Employees Association
(AIBEA) is contemplating a strike action against the “unwarranted”
FRDI Bill, if the government proceeds further, its General Secretary CH
Venkatachalam said.
 The Bill provides for the setting up of a Resolution Corporation — to
replace the existing Deposit Insurance and Credit Guarantee
Corporation — which will be tasked with monitoring financial firms,
anticipating their risk of failure, taking corrective action and resolving
them in case of failure.

54. PORTER'S FIVE FORCE MODEL FOR INDUSTRY
ANALYSIS
Power of Buyers: Customer’s Bargaining Power is high because banks provide homogeneous
kind of services and customers can get all information very easily so the switching cost is low
for the customer.
Power of Suppliers :In the banking industry supplier’s bargaining power is low
because banks have to meet many regulatory criteria made by RBI.
Competitive Rivalry: Competition in the Banking Industry is very High Because of
large number of public, private, foreign and co-operative banks.
Availability of Substitutes: There is a high threat from substitutes such as mutual
funds, T-bills, Government securities and NBFC’s.
Threat of new Entrants: Banking regulations require the approval of the regulator RBI
before setting up a new bank, so the threat of new entrant is low

55. PHARMACEUTICAL INDUSTRY - Basics
 Players in the industry
 Differentiation Strategies
 Capacity analysis of industry
 Professional trade bodies
 Demand and Supply Drivers
 Online presence

56. PLAYERS IN THE INDUSTRY
In India – Top 3 Players
 Lupin- 2.25 percent
 Cipla- 1.11 percent
 Glenmark- 1.8 percent

57. DIFFERENTIATION STRATEGIES

58. CAPACITY ANALYSIS OF INDUSTRY
Indian pharmaceutical sector is estimated to account
for 3.1 – 3.6 per cent of the global pharmaceutical
industry in value terms and 10 per cent in volume
terms. It is expected to grow to US$100 billion by
2025.the market is expected to grow to US$ 55 billion
by 2020, thereby emerging as the sixth largest
pharmaceutical market globally by absolute size.

59. PROFESSIONAL TRADE BODIES
 Indian Drug Manufacturers’ Association (IDMA)
 The Organization of Pharmaceutical Producers of
India (OPPI)
 The Bulk Drug Manufacturers Association (BDMA)
 The Confederation of Indian Pharmaceutical
Industry (SSI)
 Indian Pharmaceutical Association (IPA)
 Association of Pharmaceutical Teachers of India

62. PHARMACEUTICAL INDUSTRY
 Background of Promoter groups
 Top Management Personnel – Career Highlights
 CSR Activities
 Initiatives towards social inclusion

63. BACKGROUND OF PROMOTER GROUPS –
LUPID LTD

64. BACKGROUND OF PROMOTER GROUPS –
GLENMARK

65. BACKGROUND OF PROMOTER GROUPS –
CIPLA

66. LUPIN LTD–
CEO
Ms. Vinita Gupta
 A graduate in pharmacy from the University of
Mumbai and MBA from J L Kellog Graduate
School of Management, Ms. Vinita Gupta has been
instrumental in Lupin's forays into the Advanced
Markets
 She heads the Advanced Market business of the
company in the markets of USA and Europe.
 Under her leadership, Lupin has emerged as a
global generic player, especially in the US market
in addition to becoming a strong player in the
pediatric branded market

67. GLENMARK–
MD
Mr .Glenn Saldanha
 Mr. Glenn Saldanha is the Chairman & Managing
Director of Glenmark Pharmaceuticals Ltd. He
joined in 1998 as Director and took over as
Managing Director & CEO in 2001.
 During his tenure, he transformed Glenmark into
a truly global organization with revenue over a
billion dollar and commercial presence in over 80
countries.
 Under his leadership, Glenmark has evolved from
an Indian branded generics business, into a
research-driven and innovation-led organization.

68. CSR ACTIVITIES – LUPIN LTD
CSR in Lupin
commenced in 1968. -
Lupin is committed to the
challenging task of
becoming a proactive
partner in nation building
through the Lupin
Human Welfare &
Research Foundation
(LHWRF).
The Foundation has been
successful in making a
big difference in the
development of
poverty-ridden villages,
and especially in the life
of the poorest of the poor
and empowerment of
large number.
LHWRF has now
succeeded in revitalizing,
revamping and recreating
life in 2,200 villages in
Rajasthan, Madhya
Pradesh, Maharashtra and
Uttarakhand States of India,
which has led to LHWRF
emerging as one of the
largest NGOs in the
country

69. INITIATIVES TOWARDS SOCIAL INCLUSION
To ease the process of doing business, the government
introduced initiatives including-
Pharma Jan Samadhan, a customer grievances redressal system
was launched to address consumer complaints, a mobile
application - Pharma Sahi Daam that provides real-time
information to consumers on prices of Scheduled/Non-scheduled
medicines has also been introduced and the Pharma Data
Bank, an integrated pharmaceutical database management
system was launched to facilitate online filling of mandatory
returns as prescribed for Drugs.

70. INITIATIVES TOWARDS SOCIAL INCLUSION
Not satisfied with the regulatory and
financial steps for ensuring greater
availability of medicines at affordable prices
to all, specially the poorer masses, the
government decided to launch a country
wide Jan Aushadhi Campaign.
As part of the campaign, the
Government made available
low cost generic drugs
from July 1, 2015.
In the initial stage, the government sold 504
essential drugs including antibiotics,
painkillers, vitamins and medicines used in the
treatment of cardiovascular, respiratory,
diabetes and gastroenterology diseases.
In the second phase, medical
devices were also included
and list of medicines were
expanded.

71. EXTERNAL ENVIRONMENTS
 Controlling ministry/ regulator for the Pharmaceutical
industry
 Regulatory policies on the industry as a whole
 Factors affecting the Pharmaceutical industry
 Key initiatives by the government to promote the industry
 Environmental Issues

72. REGULATOR
The Central Drugs
Standard Control
Organization is the
national regulatory body
for Indian pharmaceutical
s and medical devices
And serves parallel
function to the European
Medicines Agency of
the European Union,
the PMDA of Japan,
the Food and Drug
Administration of
the United States and
the Medicines and
Healthcare products
Regulatory Agency of
the United Kingdom.

73. REGULATORY POLICIES
Policy Implication

74. FACTORS AFFECTING THE PHARMACEUTICAL
INDUSTRY
 IPR Intellectual property rights (IPR) in the pharma
sphere have been a contentious issue globally.
 A major change in the patent laws in India was the
enactment of the Patent (Amendment) Act, 2005
 Though there was an overall improvement in patent
protection in India, recent issues such as granting of
compulsory licenses (CLs) have been contentious

75. FACTORS AFFECTING THE PHARMACEUTICAL
INDUSTRY
Over Dependence on China
for Bulk Drug and APIs-
 India is heavily dependent on
China for bulk drug
intermediates and APIs.
 India is largely dependent on
China for almost all APIs by
fermentation route, such as
penicillin, cephalosporins and
macrolides.
 The large scale imports have
led to shutting down of several
API units

76. KEY INITIATIVES BY THE GOVERNMENT TO PROMOTE
THE INDUSTRY
 In March 2018, the Drug Controller General of India (DCGI)
announced its plans to start a single-window facility to provide
consents, approvals and other information. The move is aimed at giving
a push to the Make in India initiative.
 The Government of India is planning to set up an electronic platform to
regulate online pharmacies under a new policy, in order to stop any
misuse due to easy availability.
 The Government of India unveiled 'Pharma Vision 2020' aimed at
making India a global leader in end-to-end drug manufacture. Approval
time for new facilities has been reduced to boost investments.
 The government introduced mechanisms such as the Drug Price
Control Order and the National Pharmaceutical Pricing Authority to
deal with the issue of affordability and availability of medicines.

77. ENVIRONMENTAL ISSUES
Pharmaceuticals and personal care products-
More than twenty million tons of PPCPs are produced every
year. PPCPs have been detected in water bodies throughout
the world. further research is needed to evaluate the risks
of toxicity, persistence, and bioaccumulation.
The European Union describes pharmaceutical residues with
the potential of contamination of water and soil as "priority
substances".

78. ENVIRONMENTAL ISSUES
APRIL 17, 2018 –
A major study published in the prestigious scientific
journal Infection found “excessively high” levels of
antibiotic and antifungal drug residue in water
sources in and around a major drug production hub in
Hyderabad, as well as high levels of bacteria and fungi
resistant to those drugs.
The presence of drug residues in the natural environment
allows the microbes living there to build up resistance to the
ingredients in the medicines that are supposed to kill them,
turning them into what we call superbugs.

80. Pharmaceutical industry - Financials
 Total income
 Operating profit
 Net profit
 Return on capital employed
 Return on net worth
 Debt equity ratio

81. TOTAL INCOME
TOP THREE PLAYERS BOTTOM THREE PLAYER
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
TOTALINCOME
2015
2016
2017
28
29
0.05
0
5
10
15
20
25
30
35
40
TOTALREVENUE
2015
2016
2017

82. OPERATING PROFIT
TOP THREE PLAYERS
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
OPERATINGPROFIT
2015
2016
2017
0
5
10
15
20
25
30
35
40
OPERATINGPROFIT
2015
2016
2017
BOTTOM THREE PLAYER

83. NET PROFIT
TOP THREE PLAYERS
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
NETPROFIT
2015
2016
2017
BOTTOM THREE PLAYER
0
5
10
15
20
25
30
35
40
NETPROFIT
2015
2016
2017

84. RETURN ON CAPITAL EMPLOYED
TOP THREE PLAYERS
0
5
10
15
20
25
30
RETURNONCAPITALEMPLOYED
2015
2016
2017
-2
-1
0
1
2
3
4
5
6
7
8
RETURNONCAPITALEMPLOYED
2015
2016
2017
BOTTOM THREE PLAYER

85. RETURN ON NETWORTH
TOP THREE PLAYERS
0
5
10
15
20
25
30
RETURNONNETWORTH
2015
2016
2017
BOTTOM THREE PLAYER
-5
0
5
10
15
20
RETURNONNETWORHT
2015
2016
2017

86. RECENT DEVELOPMENTS
 Mergers and Acquisitions
 Technological developments
 Provision of Latest EXIM Policy
 Labor Unrest

87. MERGERS AND ACQUISITIONS
In December 2017, Torrent
Pharmaceuticals completed acquisition of
branded business of Unichem Laboratories.
Lupin’s acquisition of US-based
Gavin - On 23 July 2015, Lupin Limited
completed its acquisition of the New
Jersey-based generic drugs company
GAVIS Pharmaceuticals LLC and Novel
Laboratories Inc. (Gavis) for $880 million,

88. TECHNOLOGICAL DEVELOPMENTS
 MHealth sensors - Pharma research institutes are already beginning
to take advantage of mHealth technology to conduct clinical research.
Smart phones with powerful processors and advanced sensors that can
track movement, take measurements and record information are highly
useful in post-market studies and allow people to participate in studies
more easily.
 So an MHealth app has the potential to engage unprecedented numbers
of individuals in large geographical areas.
 Apple currently has several MHealth apps for clinical research on the
iPhone, including apps targeting Parkinson’s disease, diabetes,
cardiovascular disease, asthma and breast cancer, which have been
developed by leading

89. TECHNOLOGICAL DEVELOPMENTS
 3D printing - Recently, epilepsy drug Spritam (pictured) became the
first 3D printed drug to be approved by the FDA - manufacturer,
Aprecia Pharmaceuticals.
 Artificial intelligence - Computers with learning capabilities, such as
IBM Watson, are capable of digesting and interpreting millions of pages
of scientific literature and data to assist pharma companies in
development of new drugs and repurposing of existing ones.
 Johnson & Johnson is collaborating with the IBM Watson Discovery
Advisor team to teach Watson to read and understand scientific papers
that detail clinical trial outcomes

90. PROVISION OF LATEST EXIM POLICY
Accordingly, Exim Bank finance pharmaceutical or companies to fund the
research and development, new product development and other related
costs for obtaining Intellectual Property Rights/ regulatory approvals in
regulated overseas markets.

91. LABOR UNREST
Merck India Workers Go On
Strike (Feb 09, 2017)
Workers are said to be protesting their
wages at Merck’s Goa, India plant,
demanding for an hike in wages for
employees who have served the company
for at least 30 years.
The protest was held to demand the
fulfillment of the charter of demands of the
employees, which they claim, has been
pending for over 30 years. The protesters
also condemned the “unfair labour”
practices being followed by the company.

92. LABOR UNREST
Court charges Sun Pharma with unfair labor practices (Aug 01, 2016)
 MUMBAI: The Mumbai Industrial Court has ruled that Sun
Pharmaceutical Industries - adopted unfair labor practices by holding
back salaries of 86 sales promotion employees since May after they
protested planned changes in service conditions.
According to the petition filed by the Federation of Medical & Sales
Representative Associations of India, Sun Pharma had “victimized” the
86 employees and stopped paying them salaries and reimbursements.